Tax obligations of property owners

Deadline for submission of a Real Estate Tax return for 2020 is 31 January 2020.

Real Estate Tax return shall be submitted only in case that facts decisive for the Real Estate Tax assessment have changed during 2019. Changes of facts decisive the tax assessment are for example an acquisition or sale of a real estate, change in the size or type of land, change in the ground plan of the building, superstructure of another above-ground floor, etc. Status as of 1.1.2020 is decisive for the Real Estate Tax return.

If the taxpayer has submitted the Real estate Tax return in any of previous years, or the Real Estate Tax has been assessed by the tax administrator acting ex officio in any of previous years, and no facts decisive the tax assessment were not changed in 2019 compared with such previous period, the taxpayer has no obligation to submit the Real Estate Tax return for 2020. The Real Estate Tax liability is in such cases assessed by the tax administrator based on last known tax liability. The taxpayer pays the Real Estate Tax liability on the basis of a received postal slip sent by the tax administrator, eventually on the basis of the payment information sent by the tax administrator to tax payer via email, if the taxpayer has applied the tax administrator for this email communication.

The subject of the Real Estate Tax are plots of land registered in the Land Register, completed or used constructions connected to the ground by a solid foundation (e.g. buildings) and completed or used residential units (flats) or non-residential units (non-residential premises).

The Real Estate taxpayer is, in most cases, the owner of the real estate. In case two or more persons have ownership title to a property (co-ownership), the Real Estate Tax return may be submitted on behalf of all co-owners by one co-owner as a joint representative for the whole property, or the Real Estate Tax return may be submitted separately by each co-owner for his/her own share in the property.

The standard Real Estate Tax rate for a plot of land depends on the nature of the plot of land or on purpose of its use. The basic Real Estate Tax rate used for a building or unit (flat, non-residential premises) depends on the type of building and purpose of its use. The standard tax rate is further increased depending on number of additional above-ground floor and multiplied by the coefficient depending on the relevant location where the property is located. Municipalities may also set by municipal decree a coefficient increases the tax rate for some buildings and units. The calculated tax shall be further increased if there is a non-residential space used for business purposes in a residential building or residential unit.

Municipalities has also competence to determine a local coefficient, which may increase Real Estate Tax liability up to five times.

The Real Estate Tax liability is due by 31 May 2020 if it does not exceed CZK 5,000. In case the total Real Estate Tax liability exceeds CZK 5,000 it is due in two same installments by 31 May 2020 and 30 November 2020.